Saber Labs, a core contributor to a cross-chain stablecoin exchange bearing its name and built on Solana, has raised a $7.7 million seed round.
The funding was led by Race Capital with participation from Chamath Palihapitiya’s Social Capital, Jump Capital, Multicoin Capital and Solana Foundation, among others.
Dylan Macalinao, co-founder and CEO of Saber Labs, told CoinDesk Tuesday via a spokesperson the funding is in relation to the exchange’s fast growth and total value locked (TVL).
“Value is locked up in the exchange when liquidity providers deposit assets into a liquidity pool (e.g., the USDC–USDT pool, which currently has $22 million in assets),” said Macalinao. “We expect Saber’s TVL to continue to rapidly increase as more projects integrate with Saber’s deep on-chain liquidity.”
Other notable investors included OKCoin’s Jason Lau, FTX’s Tristan Yver, Curve Finance’s Julien Bouteloup, Terraform Labs’ Jeff Kuan and Stacks’ Ryan Shea.
The injection of capital for Saber Labs will be directed into three main areas including hiring, marketing and business and product development.
Saber, built atop the Solana protocol, is a cross-chain decentralized exchange and automated market maker platform based around stablecoins – cryptos pegged 1:1 to fiat and/or commodity prices.
Saber uses these stablecoins as a means to trade into and out of tokens on varying blockchains, helping to exchange value across differing ecosystems.
An algorithm is also built into its design to lower the slippage in trading across assets while maintaining high capital efficiency for liquidity providers, according to Saber Labs.